Employing someone to work in your home

Source: HM Revenue & Customs | | 05/12/2018

When you employ someone to work in your home, it is your responsibility to ensure you meet the employee's rights and deduct the correct amount of tax from their salary. This can include employees such as a nanny, housekeeper, gardener or carer. The rules
are different if the person is self-employed or paid through an agency.

If you employ anyone they must:

have an employment contract

be given payslips

work no more than the maximum hours allowed per week

be paid at least the National Minimum Wage.

The domestic employee is also entitled to employee rights such as statutory maternity pay, statutory sick pay, paid holiday, redundancy pay and a workplace pension once they meet the standard eligibility requirements. An employee must also have minimum notice
periods if their employment is to end. Note, that these rules apply even if the domestic employee works on a part-time basis although some payments depend on earnings or may be adjusted pro-rata. It is also your responsibility to register as an employee, check
any employees are allowed to work in the UK and to have employer’s liability insurance.

Planning notes

There are special rules for au pairs because they are not usually considered to be workers or employees. They are not entitled to the National Minimum Wage or paid holidays. Au pairs are treated as a member of the family they live with and receive 'pocket
money' instead of salary. However, they may be liable to Income Tax and National Insurance if the amount of ‘pocket money’ they receive is high enough.

If you are considering the employment of domestic staff and would like assistance with meeting your payroll and minimum wage obligations, please call.